1. TOD University (2013) Housing 202: Building New Affordable Homes

2. 1. Land 2. Money 3. Political support

3. Land: Nuisance Properties

4. Land: Joint Development with Metro

5. Land: City-Owned Parking Lots Highland Park Gold Line Station

6. Land: Housing Authority Garden style apts Large tracts of land Owned by a public agency

7. Land: Joint Use on Public Land LAUSD Early education center 50 affordable apartments Shared community room & playground

8. $ 5 million + $25 million $30 million $ 170,000/mo permanent project financing cost Example #1: Building 100 New Apartments $ 1,700/mo + $ 600/mo $ 2,300/mo perm. project financing cost per apt operating costs per apt minimum rent required per apt Affordable to someone with an income of: land construction & other costs total project cost $82K/year or $6,900/mo

9. Subsidy to make it more affordable 3 ways to lower costs - Free land - Help with construction costs - Help with monthly operating expenses

10. Example #2: Free land + $10 million subsidy for construction $ 850/mo $ 600/mo $1,450/mo $ 0 million $15 million land construction & other costs total project cost Affordable to someone with an income of: $ 52,000/year $4,300/mo perm. project financing cost per apt operating costs per apt minimum rent required per apt

11. Imagine that someone gave you a brand new building with 100 apartments. How much rent would you have to charge? Small Group Exercise #1

12. How much rent if land & building are free? $ 0/mo $ 600/mo $ 0 land construction & other costs total project cost perm. project financing cost per apt operating costs per apt minimum rent required per apt

13. Match incomes to occupations. Match rents to incomes to affordable rents. Match what people can afford to rents in the neighborhood. Exercise # 2: Match Incomes & Rents

14. Operating Subsidies $ 460/mo $ 213/mo $ 74/mo Minimum Wage Mother & 2 kids General Relief Lower rents by subsidizing operations Section 8 Voucher Tenant pays what they can afford Section 8 pays the balance each month

15. Conventional Mortgage Redevelopment Housing Set Aside State Multi-family Housing Program (MHP) Low Income Housing Tax Credits Tax Exempt Bonds Community Development Block Grant HOME Affordable Housing Trust Fund Cal HFA Section 8 Housing Vouchers Affordable Housing Programs Conventional Mortgage Redevelopment Housing Set Aside State Multi-family Housing Program (MHP) Low Income Housing Tax Credits Tax Exempt Bonds Community Development Block Grant HOME Affordable Housing Trust Fund Cal HFA Section 8 Housing Vouchers

16. 16 Average 2003-09 HOME 50% MHP 20% CRA 17% - now gone HUD CDBG 5% No General Fund contributions since 2005 Public Funding for Affordable Housing City of Los Angeles 2003-2009 (Economic Roundtable)

17. Possible New Money Housing Benefit/Mitigation Fees In-lieu fees from mixed-income housing ordinances Building envelope bonuses Infrastructure Finance Districts Parking districts Business Improvement Districts Voter approved bonds or assessments

18. Political Support: Policy More money More land Bring affordability into land use planning Put Housing Element programs into action State legislation Federal funding

19. Political Support: Community Benefits Agreements Work with developer to address neighborhood concerns Encourage voluntary mixed-income Encourage developers to work with non-profit developers

20. Political Support: Individual Affordable Projects Support developers in working with neighbors Support applications for funding Help with planning approvals

21. Los Angeles Housing Department Community Housing Developers Community Economic Corporations Legal aid organizations Tenant rights organizations Bicycle & pedestrian advocates Health advocates Experts & Resources

22. Housing 202: Building New Affordable Homes TOD University (2013) Thank you

23. Photo Credits Slides 1, 4, 17, 18 - Beth Steckler Slide 2: Courtesy of Abode Communities by John Ellis Photography. Slide 3: Courtesy of Hollywood Community Housing Corporation—St. Andrew’s Court. Slide 4: Courtesy of McCormack and Adolfson & Peterson Construction Slide 5: Google Maps Slide 6: photo by Jerard Wright, aerial map by Google Maps, drawing courtesy of the Housing Authority of the City of Los Angeles. Slide 7: Courtesy of Abode Communities by Gary Krueger Project, Rio Vista Apartments Slide 16: Courtesy of Economic Roundtable Slide 19: Courtesy of LAANE Slide 20: Lakisha Hull